DETROIT -

Detroit Emergency Manager Kevyn Orr is suing the city's pension system for what he is calling a shame of a deal.

The Kwame Kilpatrick administration borrowed $1.4 billion in 2005 to try to shore up Detroit's underfunded pensions. The deal led to a financial disaster, one which Orr alleges went around the rules.

The lawsuit filed Friday night is the first legal step. Orr may file suit against the banks involved unless a settlement can be reached.

Negotiations are ongoing.